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Rundown Introduction of Credit Cards Transaction Process of Credit Card Market situation of credit cards Development of credit card

Credit Card Bank name Cards issuers card number cardholder ’ s name Clip Valid date Expiry date

Customer service hotline : xxxxxxxx Lost/ Stolen card hotline:: xxxxxxxx signature Hotlines safety code

General History of Credit Cards In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. The first use of magnetic stripes on cards was in the early 1960’s, when the London Transit Authority installed a magnetic stripe system.

Three most well known brands of credit cards Name of credit card companies Visa MasterCardAmerican Express Year of beginning Meaning of the brands -Acceptance -convenience -reliability -buying power -immediate deposit -security -flexible payment -Trust -Integrity -Security -Quality -customer service Original nameBankAmericardMaster Charge Year of issue

Authorization Process of Transaction of Credit Card Cardholde r Merchant Acquirer (Merchant’s bank) Credit Card Company Issuer (Cardholder’s bank) Settlement Bank

showing the growth of using credit card (01-05) Sources:

Charge-off (bad debit) The charge-off amount during is as follow:

Charge-off (bad debit)

Recommendation for card issuer  issue a secured credit card  credit history, assymetric infromation  offer debt settlement program, prevent charging off

TJX on Mar31,2007 revealed personal information about 45.7 million credit and debit cards Affected cardholders would NOT be required to bear the cost of any fraud According to the code of banking practices, card issuers will bear the full loss Data theft puts HK credit cards at risk

For card issuers: To use strong passwords To use readily available security To employ sufficient measures to detect unauthorized access

Sign your Credit Card immediately Check the total amount on slips before signing, and keep the "Cardholder Copy“ Do not sign any blank or incomplete slips Monitor your monthly statements Do not easily volunteer any personal information or financial information in or phone.

Our survey 60 %: under $ %: under $5000

Data of Hong Kong Monetary Authority (HKMA) 4th quarter of 2006 The average expenditure by credit card in Hong Kong (per person): =$ per person

First Band Loyalties : study conducted by Yankelovich, Skelly and Whit first brand loyalties as teenagers stay with company for a long period of time build up a long relationship with customers

Potential of University Students on Spending: further of University graduates are brighter mean of salaries of fresh graduates from University is $9,500 increase continuously in the rest of lives The potential on spending are unlimited depend on University students

PayPass a wireless, contactless card system without swiping credit card though a reader

Chip Card increase the security level of credit card preventing your cards from being copied to produce counterfeit cards security level of clip cards is higher than magnetic stripe card Chip

Accelerated Solutions Development Environment (ASDE) innovate faster and faster a software development process that helps IT respond more quickly to such proposals methodology that meets a customer ’ s needs best

Carl Lui Hung Sun Louis Lo Wan Shuen Yolanda Wong Yee Ting Karen Chung Tin Yu Peggy Fan King Yi Cream Chung Suet Ying